Senate Commerce Committee Statement to Senate, No. 4259 — State of New Jersey (November 17, 2025)

Summary

The Senate Commerce Committee of the State of New Jersey, in a statement dated November 17, 2025, reports favorably and with committee amendments Senate Bill No. 4259. As amended, the bill exempts insurance-support organizations and national securities associations from current-law requirements to notify consumers of collection and disclosure of personal data. It also exempts information treated like protected health information under HIPAA when used or disclosed in accordance with HIPAA, and certain human subjects research conducted under good clinical practice guidelines. The bill expands the definition of de-identified data to include data de-identified under HIPAA where recipients are contractually prohibited from attempting to reidentify it.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
4259

with
committee amendments

STATE
OF NEW JERSEY

DATED: NOvEMBER
17, 2025

The Senate Commerce Committee reports favorably and
with committee amendments Senate Bill No. 4259.

As
amended, this bill exempts insurance-support organizations and national
securities associations from provisions of current law that require certain
entities to notify consumers of collection and disclosure of personal data.
Under current law, insurance institutions and other entities are exempt from those
requirements.

As amended, the bill exempts certain data from disclosure
requirements under current law, including:

(1) information
treated like protected health information collected, used, or disclosed by a
covered entity or business associate under the "Health Insurance
Portability and Accountability Act of 1996" (HIPAA), when the information
is used or disclosed in accordance with HIPAA and the information is afforded
all the privacy protections and security safeguards of the federal laws and
implementing regulations under HIPAA; and

(2) human
subjects research conducted in accordance with good clinical practice
guidelines issued by The International Council for Harmonisation of Technical
Requirements for Pharmaceuticals for Human Use.

Finally,
as amended, the bill expands the definition of de-identified data under current
law to include data de-identified in accordance with the requirements in HIPAA,
where any recipients of that data are contractually prohibited from attempting
to reidentify the data.

As amended and reported by the committee, Senate Bill
No. 4259 is identical to Assembly Bill No. 5017 (2R), which was also amended
and reported by the committee on this date.

COMMITTEE AMENDMENTS :

The committee amended the bill to:

(1) exempt national securities associations
registered pursuant to section 15A of the “Securities and Exchange Act of 1934”;

(2) exempt certain data from disclosure requirements
under current law, including:

(a) information treated like protected health
information collected, used, or disclosed by a covered entity or business
associate under HIPAA, when the information is used or disclosed in accordance
with HIPAA and the information is afforded all the privacy protections and
security safeguards of the federal laws and implementing regulations under
HIPAA; and

(b) human subjects research conducted in accordance
with good clinical practice guidelines issued by The International Council for
Harmonisation of Technical Requirements for Pharmaceuticals for Human Use; and

(3) expand the definition of de-identified data under
current law to include data de-identified in accordance with the requirements
in HIPAA, where any recipients of that data are contractually prohibited from
attempting to reidentify the data.

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